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Payday Alternative Loan Rulemaking (PALs We Rule)

Payday Alternative Loan Rulemaking (PALs We Rule)

The PALs I rule in 2010, the Board amended the NCUA’s general lending rule, В§ 701.21, to provide a regulatory framework for FCUs to make viable alternatives to payday loans. 9 The PALs I rule, В§ 701.21(c)(7)(iii), allows an FCU to offer to its users a PAL loan, a type of closed-end credit, at a greater APR than many other credit union loans provided that the PAL has specific structural features, produced by the Board, to safeguard borrowers from predatory payday financing methods that will trap borrowers in duplicated borrowing rounds. […]

By |January 28th, 2021|joint payday loans|0 Comments
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